Required information [The following information applies to the questions displayed below.] Golden Corporation's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. GOLDEN CORPORATION Comparative Balance Sheets December 31 Current Year Prior Year $ 167,000 87,500 605,500 860,000 343,000 (159,500) $ 1,043,500 $ 93,000 31,000 $ 110,300 74,000 529,000 713,300 302,000 (105,500) $ 909,800 $ 74,000 26,600 100,600 Assets Cash Accounts receivable Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity 124,000 595,600 571,000 201,400 164,500 122,500 73,700 $ 909,800 Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity $ 1,043,500 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes. Income taxes expense Net income $ 1,807,000 1,089,000 718,000 497,000 54,000 167,000 26,200 $ 140,800 Additional Information on Current Year Transactions a. Purchased equipment for $41,000 cash. b. Issued 12,300 shares of common stock for $5 cash per share. c. Declared and paid $92,000 in cash dividends.